News Releases
Toshiba to Receive Funds from Japanese Government's Fund for Responding to Yen Appreciation
TOKYO—Toshiba Corporation (TOKYO: 6502) today announced that it will receive funding to counter yen appreciation from the Japan Bank for International Corporation's fund. Announced by Japan's Ministry of Finance in its August 24, 2011 emergency package against yen appreciation, the fund supports Japanese companies in carrying out overseas M&A. Toshiba has negotiated U.S. dollar-denominated loans totaling approximately US$1 billion, some $600 million from the government fund and $400 million from Japanese private banks.
Toshiba reinforced its Smart Community business with the July 2011 acquisition of Landis+Gyr, a global leader in energy management solutions for utilities, in a deal financed by a short-term bridge loan raised from private banks. Funding from the government's fund will allow Toshiba to extend the loan period and to reinforce its financial base while minimizing the impact of the cost of the acquisition.
Going forward, Toshiba will seek to reduce the impact of exchange rate fluctuations on its balance sheet using the fund to hold long-term debt in U.S. dollars.